Updated: 09/14/2010 03:24:21 PM CDT

http://www.twincities.com/ci_16073712?nclick_check=1

Larry Reynolds, who had earlier pleaded guilty to a money-laundering charge in connection with the Tom Petters' fraud case, was sentenced to 10 years and 10 months in prison today.

U.S. District Court Judge Richard Kyle said that Reynolds cooperation with prosecutors was tempered by his criminal history and long involvement with Petters.

"You essentially led a life of crime," Kyle told Reynolds, 68, before sentencing him. Reynolds had faced a maximum sentence of 20 years in prison. For sentencing purposes, his previous crimes were so far in the past that they weren't factored into the sentence.

While Kyle did lower the sentence, he said he kept it higher "to offer an adequate deterrent," and to protect the public from Reynolds' fraudulent ways.

"The extent of my guilt is clear to everyone," Reynolds said, when given a chance to speak prior to sentencing. "I regret the day I met Tom Petters."

Reynolds, who had homes in Las Vegas and W. Hollywood, Calif., ran a sham company through which he funneled investors' money and sent it back to Petters Co. Inc. He moved $12 billion through his accounts over the course of about 8 years.

Petters was convicted last year of orchestrating the $3.5 billion fraud and is serving a 50 year prison sentence. He is appealing the conviction and sentence.

Reynolds' previous history of fraud had brought him into the federal witness protection program, after he testified against New England mobsters more than 25 years ago.

He asked the court to keep his requested prison location confidential. Reynolds' attorney, Fred Bruno said Reynolds fears for his safety, because of his criminal past, and said there are organizations whose "sole purpose" is to kill people behind bars.